I remember a friend trying to attract liquidity to a DeFi opportunity some time ago He had an interesting opportunity, but getting people to actually deposit was a different challenge And quite unfortunately, getting people in was only half the problem. Keeping them there was another It got me thinking about how protocols approach liquidity incentives An attractive reward can certainly convince someone to take a closer look at a vault or make that initial deposit But what happens when the incentives stop? Would people still want to stay? Does the underlying strategy offer enough value on its own? Or was the reward the only reason they came in? This is one reason I find @turtledotxyz approach interesting, particularly with Turtle Streams Protocols can create incentive programmes, define the conditions for participation and reward depositors based on the rules they set I like the idea of making that process more accessible to the teams that need it It gives them another tool to attract liquidity and create incentives around participation And for me, that's the interesting part: making liquidity incentives more intentional, rather than treating them as an afterthought There's a lot more to sustainable liquidity, of course, but giving protocols better tools to attract and reward depositors is a meaningful part of the equation
SimonNickShare

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.